Colliers sees real estate growth in VisMin

REAL estate services firm Colliers is optimistic of the prospects of the property sector in the Visayas and Mindanao regions this year as the economy is expected to recover.

In a virtual briefing on Thursday, Colliers senior director for office services Dom Andaya said they expect business process outsourcing (BPO) companies to continue with their provincial expansions despite Omicron and Typhoon “Odette” disrupting office plans.

“We expect offices to open very soon because of the improving situation and that will result in office expansions,” he added.

Andaya said the region also has an opportunity to capitalize on talent, especially as infrastructure is continuously developed in some of its key cities.

“Talent has always been here in Visayas and Mindanao. The only problem before was infrastructure and probably the availability of BPO buildings, which are now being addressed,” he said.

Andaya noted that 20 percent of the overall office transactions in the country last year was in the provinces, with Cebu, Iloilo, Davao and Misamis Oriental taking the lead.

“That’s a testament to the prospects of these Visayas [and] Mindanao cities in terms of further growth moving forward,” Andaya underscored.

Meanwhile, annual office transactions in key Visayas and Mindanao provinces last year reached 69,000 square meters (sqm), which is 80 percent more than the 38,000 sqm recorded in 2020.

Colliers associate director and head of research Joey Bondoc is likewise optimistic of the region’s residential segment

Bondoc said the expected recovery in office leasing will also have a positive impact on the residential demand outside of Metro Manila.

“The VisMin region holds a lot of promise, especially now that a lot of places are starting to reopen, even tourist destinations are starting to ease some mobility restrictions. Knowing that a lot of destinations in VisMin are tourist-centric, we, of course, are optimistic that these regions, these localities, will eventually recover,” he highlighted.

Bondoc cited several key factors seen buoying the region’s residential market, including increased vaccination rate, improved consumer and business confidence, further growth of overseas remittances and government-projected economic recovery.

He also noted that there is an ample supply of residential units in the area, which will help in the anticipated steady demand for horizontal projects.

“We will be seeing and expecting new supply of house and lot and lot-only projects in key cities in the Visayas and Mindanao and this new supply will kick in demand moving forward,” Bondoc explained.

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The article was originally published in The Manila Times and written by Faye Alamzan.